Analyst: Apple’s iTunes Radio Has This Advantage Over Pandora

Although Pandora (NYSE:P) is currently the biggest online radio service provider, it may soon face some stiff competition from Apple’s (NASDAQ:AAPL) new iTunes Radio service. Radio listening in cars is one major area where Pandora may be especially vulnerable to Apple.

By combining the Siri Eyes Free functionality with its new iTunes Radio Service, Apple is creating a serious threat to Pandora’s market dominance notes BTIG analyst Richard Greenfield viaBloomberg. This automotive advantage could give Apple a significant edge over Pandora since more than half of all radio listening takes place in cars.

“Apple is leveraging its expertise in marrying hardware and software design to strengthen their ecosystem as they try to take a more active role in the ‘connected car,’” writes Greenfield. Based on this market advantage, the analyst recommends selling Pandora shares.

As part of its overall strategy to integrate its services into automobiles, Apple also introduced the “iOS in the Car” functionality at this year’s Worldwide Developers Conference. Acura, Chevrolet, Ferrari, Honda (NYSE:HMC), Hyundai, Infiniti, Jaguar, Kia, Mercedes-Benz, Nissan, Opel, and Volvo have all announced iOS in the Car support for their vehicles.